Falcon Oil & Gas Ltd. (TSX VENTURE:FO) ("Falcon" or the "Company"), a Toronto listed and Dublin headquartered company focused on unconventional oil and gas exploration and producing assets in Australia, South Africa and Hungary, is pleased to announce that an independent study by RPS Energy has substantially increased Play level Prospective Resources in the Beetaloo exploration permits in Northern Australia held by Falcon's 73% subsidiary, Falcon Oil & Gas Australia Limited ("Falcon Australia") as well as providing an update on the Contingent Resources in the Mako Trough, Hungary.

The Company recently engaged RPS Energy to carry out an updated independent evaluation of and produce a Competent Person's Report ("CPR") on the potential hydrocarbon resources pertaining to Falcon Australia's acreage interests in the Beetaloo Basin, Australia and the Mako Trough in Hungary as at 1 January 2013.

A summary of the resource updates are set out in the tables below with the most significant point to note being the substantial increase in the Play level Prospective Resource in the Beetaloo Basin.

Previous work carried out by Ryder Scott on the Beetaloo Basin in July 2009 and May 2010 indicated Prospective Resource recoverable volumes of 64 TCF of gas and 18 billion barrels of oil. The work completed by RPS Energy, which considers the potential of the whole of the on-block basin indicates a considerable increase in the Play level Prospective Resource recoverable volumes of 162 TCF of gas and 21 billion barrels of oil.

Falcon is pleased to see that its on-going efforts in the basin-scale re evaluation of the Beetaloo basin and the new information obtained in the Shenandoah-1 well are fully reflected in the latest resource volumes.

RPS Energy also updated their previous report on the Mako Trough, including for the first time Prospective Resource recoverable volumes attributable to the shallow "Algyo Play" which the Company and its partner NIS will be targeting this year. According to the RPS CPR report, eight of the ten prospects identified by Falcon contain 568 BCF of prospective recoverable gas resources. Falcon and NIS have high graded the top three prospects which will be targeted by the initial three well exploration drilling program announced on the 14th January 2013 and commencing in late Q1 2013.